PPI Disinflation Rate Cut Bets
Disinflation signals from favorable PPI data will push Treasury bond prices higher as rate cut expectations increase
Too little corroboration in the last 3 days to call a trend (7 articles). Watching for it to gain traction.
"Such data could keep interest rates low, which is something Wall Street loves"
"U.S. inflation data showed a better-than-expected improvement in July."
"US inflation cooled to 3.4%. The retreat in oil prices also raised optimism that the Federal Reserve would hold interest rates steady next month."
"T-note prices received a boost from today's favorable PPI report... The 10-year T-note yield is down -7.2 bp to 4.621%."
"Expectations for an interest rate hike from the Federal Reserve decreased even further after wholesale inflation remained flat in July. Expectations for an increase to the 3.75%-4% benchmark declined to 32.1%, compared to 40.6% the day prior."
"T-note prices received a boost from the favorable PPI report. Also, the 10-year breakeven inflation expectations rate fell -0.6 bp to 2.260%."
"S&P 500 Hits New High On Cool Inflation Data, Triggers A Bullish Market Upgrade"